Health-focused FMCG brands across Asia-Pacific are under growing pressure to deliver innovation and functionality at prices consumers are willing to pay.
The challenge of aligning health benefits with value-driven consumer expectations is far from uniform across Asia.
In its work growing New Zealand and ‘better-for-you’ brands across Asia, FMCG specialist Optimo Foods sees this first-hand across the region.
Meeting rising expectations in a diverse region
The firm observes that the food industry is driven by a combination of health, convenience and sustainability. This means brands must deliver quality innovation without compromising on price or accessibility.
“Consumers want access to good quality products with clean labels and sustainable packaging and which fit in with their lifestyles as well,” said Optimo Foods director Su-Lyn Wee.
She added that organic products, offering both health and sustainability traits, has been an ongoing trend for the last decade.
Ceres Organics, New Zealand’s largest organics brand, is a well-known brand with products like Rice Crackers and Rice Cakes available in major supermarkets in Singapore.
“New Zealand also has a trusted reputation as a source of produce and products which are responsibly farmed and manufactured,” said Wee.
“A quick survey of the range of apples available in the supermarkets at the moment will show that at least three out of seven to eight brands are from New Zealand, such as Envy, Dazzle, Queen, and Rockit.”
Additionally, where innovation is concerned, New Zealand brands “punch well above its weight”, said Wee.
She cited the Pill Box from Zespri, where gold kiwifruit were packaged in a cardboard box resembling a pill box, conveying the message that a gold kiwifruit a day is better than popping pills.
However, designing a product that truly connects with today’s consumer is far more complex than it looks.
Challenges
Wee pointed out that the product development process requires a deep understanding of the target audience, the functionality and sensory experience of the product, and the technical ability to bring that vision to life from ingredient sourcing to manufacturing, packaging, and shelf presentation.
This complexity is especially pronounced in urban and competitive markets like Singapore, where consumers tend to place less emphasis on creativity and are slower to embrace new formats unless there is a clear functional or health benefit.
This means brands must work harder to educate, sample, and build consumer trust all while keeping price points competitive.
“It’s a highly saturated market where global and local brands compete side by side on every shelf,” said Wee.
She added that there is limited awareness of how much time, expertise, and deliberation goes into product development – such as from choosing the right texture for a snack to debating even the precise hue of pink in a dragon fruit soda.
“Consumers are value-driven, with expectations of ‘cheap and good’, often without recognising what goes into achieving that balance.”
But the tension between price and value is not confined to Singapore alone.
In emerging South East Asian markets such as Vietnam, Malaysia, and Thailand, rising affluence is driving demand for premium FMCG products – yet cost consciousness remains a constant.
These developments reflect consumers’ increasing desire for products that go beyond taste – offering benefits for gut health, energy, or nutritional balance.
Functional innovation on the rise
Despite these challenges, health-focused innovation continues to gain traction.
This has led to a rise in functional offerings that blur the lines between food and supplements – such as pre- and probiotic sodas from brands like New Zealand’s Moodi and Singapore’s Curated Culture, or protein-enriched treats like Grande ice cream and Coa chocolate.
Low- or no-sugar alternatives are also expanding rapidly in categories such as gummies and beverages.
“It’s an area which Korea is ahead of the game, as we’ve seen quite a few product ranges which are sugar-free without a strong aftertaste,” Wee noted.
However, continuous innovation means ongoing investments. As brands try to justify higher prices with greater benefits, trust becomes a central currency.
This is where brands will need to work on building trust among consumers.
Building trust through storytelling
Founder-led brands, in particular, can hold an edge in Asian markets.
“There is a person who is willing to put their name behind their brand and products,” said Wee. “Products made by founders with the strongest passion for their industry or an unyielding quest to develop the best product to feed their families tend to resonate well with Asian consumers.”
This emotional and values-based storytelling can help bridge the price-value gap, especially when backed by functional credentials.
The opportunities ahead
With long-term growth expected in Asia’s growing markets, the outlook for better-for-you brands in the region remains strong.
“Vietnam, Malaysia, and Thailand appear to be growing markets for premium FMCG products. Rising affluence and increasing awareness of better-for-you products are helping with the increase in demand for such products,” said Wee.
“In the longer term, around five years from now, we will likely see Indonesia, Myanmar and Cambodia joining the list of growth markets.”
But succeeding in the region means more than just bringing innovation to the shelf – it requires brands to localise, educate, and build loyalty in markets where affordability still drives purchasing decisions.
As Wee puts it, brands must “innovate while staying commercially viable. This is no small feat when creativity, cost, and taste are all non-negotiables.”
